Refinancing Advice For Active Duty Marine

by David from Camp Lejeune, North Carolina USA

Refinancing advice for active duty Marine: Hi Kate, I am a Marine stationed in Camp Lejeune, NC with my wife Samantha. We bought our home while i was deployed last year for $86,000. However, there were several bills that got overlooked while I was deployed due to the temporary address change of my wife when she moved home while I deployed.

Unfortunately, those overlooked bills did a number to my credit. My 30 year mortgage is a VA loan through a major lender. Would it be a good idea for me to refinance now to hopefully make my payment a little easier?

I got a letter in the mail advertising refinance for some sort of 3/1 hybrid rate as low as 3.875% due to the new stimulus bill. I have made improvements to my home and I am pretty sure I have equity built up. Just looking for suggestions. Thank you! David

Kate Answers: Refinancing Advice For Active Duty Marine

Dear David,

First a sidebar: For non-military reading this, I want to tell you how often the credit of our military is affected while deployed. Our military families have to live with the effects and it often makes their mortgage payments higher. Again, as I said earlier today, if I had a communication hotline to the White House...

Now back to your letter, David. Is the difference between your current payment and a payment if you refinanced worth giving up security?

I don't know how much lower your payment would be under a 3/1 hybrid compared to your current mortgage which sounds like a fixed rate mortgage. (A 3/1 hybrid is normally fixed for only 3 years and adjustable afterward. Note though, there are many variations)

But please take into account if your mortgage is now fixed that you would be giving up that security AND might need to refinance the 3/1 hybrid when it begins to adjust in another 36 months.

Secondly, besides considering security, take a look at the numbers. Here is a good place to start. Go to Mortgage Refi Tips And Answers and walk through the steps. Of course afterward, let me know if you have questions.

I have also provided links to more refinancing tips below for your convenience. After reading through them, please let me know if you have more questions.

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Best Wishes,




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